Insurance -
Fraudulent insurance claims cost everyone - 05/03/2008
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Lying customers con more than £4 million out of insurers every day, according to research. A survey conducted by the Association of British Insurers (ABI) showed that 10% of adults said they have lied on an insurance claim.
The estimated annual cost of fraudulent claims to the insurance industry annually is £1.6 billion, the cost of these claims adds £40 to every premium paid by honest policyholders.
This study was conducted among 7,000 people as part of the ABI’s investigation into fraud, around five million admitted to lying on an insurance form. This is known as opportunistic fraud, when someone “bumps up” the price of the affected item, and this is estimated to cost insurance companies £800 million per year.
Insurance fraud was found to be most likely on home insurance policies, with half of those admitting to this crime using it on home insurance, both contents and buildings insurance.
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